European Shares Surge on Eased US-Iran Tensions and Falling Oil Prices

European shares rose nearly 1% on Monday due to easing US-Iran tensions that lowered oil prices, thus increasing investor risk appetite. The STOXX 600 index saw a boost, with travel stocks like Lufthansa and IAG gaining significantly. Investors are now focusing on upcoming US tech earnings.

On Monday, European shares made remarkable gains, climbing nearly 1% as a weekend pause in U.S.-Iran hostilities resulted in lower oil prices. This development boosted investors' risk appetite while a critical week for U.S. big tech earnings looms.

As of 0706 GMT, the STOXX 600 index had climbed 0.8% to 649.34. A senior Iranian official informed Reuters that Iran would cease attacks if the U.S. reciprocated, following a suspension in U.S. bombing to conserve its arsenal.

Brent crude futures plunged 6% to about $90 a barrel, with the energy sector experiencing a 2% drop. However, travel and leisure stocks surged by 2.4%, benefiting from the waning oil prices. Notably, Lufthansa and IAG shares rose by 3.7% each, while Ryanair observed a 3.4% increase.

This week, investors are keenly watching earnings reports from U.S. tech giants including Microsoft, Meta Platforms, Amazon.com, and Apple to assess if the AI-driven rally maintains momentum. Europe's corporate earnings season is also in full effect.

Vodafone's shares saw a 3.7% uptick following the telecom company's upward revision of its outlook after the Safaricom deal, positioning itself at the higher end of its revised expectations.